Position management, simply put, is about installing safety mechanisms on your account—losing little when you’re wrong, earning steadily when you’re right, and no matter how intense the fluctuations, they won’t crush you.

For accounts just entering the market with only 1000U capital, this strategy ensures that each trade is supported by a clear logical basis.

**Protect the Lifeline: The Basic Positioning Rule**

Never commit the entire account at once. Set each position at about 10% of your total funds; for 1000U, that’s 100U per trade. The benefits are obvious—no matter how bad the trade, losses are limited, always leaving room for a comeback, and you won’t be wiped out by a single mistake.

**Follow the account, not emotions**

Profit reaches 1200U? The next trade can be 120U (still 10%). This isn’t reckless gambling but reflects that your account size has actually increased, so your position size grows with it. Conversely, if the account drops back to 900U, reduce your position to 90U or less. During losses, the first goal isn’t to quickly recover but to stay alive and see the next opportunity.

**Enter in batches, avoid all-in**

This is the most direct way to reduce risk. Don’t invest 100U all at once; start with 70U to test the market response. Once the direction is confirmed, add a second or third batch. Wrong? Loss is only 70U, and you can quickly cut losses. Correct? The market gives you confidence and opportunity to add positions.

**Set stop-loss before entering**

Set your stop-loss level before entering, usually around -8% to -12%. For a 100U position, a 10% stop-loss means risking a maximum of 10U—clearly define your loss limit before acting. When there’s unrealized profit, gradually move the stop-loss up to turn paper gains into real protection.

**Layered partial profit-taking**

When the market approaches your target, first close 70%-80% of your position to lock in profits. The remaining small position is protected with a trailing stop-loss, using confirmed profits to pursue potential trend continuation. This way, greed doesn’t cause you to give back your gains.

**Win rate isn’t the key; risk-reward ratio is**

Don’t focus solely on how many times you win or lose. What truly matters is “how many losses are covered by one win.” Even with only a 40% win rate, as long as your risk-reward ratio stays at 1:2 or higher, your account can grow steadily over time. This is probability theory, not luck.

Remember this: position management stabilizes your trading rhythm, stop-loss protects your capital, and the risk-reward ratio determines how far you can go. Market opportunities won’t disappear as long as your account survives until they arrive.